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Nike

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Company Background<br />Founded by Phil Knight and Bill Bowerman in 1964<br />Used to be called Blue Ribbon Sports<br />In 1971, they introduced the concept of Goddess of Victory-Nike and in 1972 officially launched the company.<br />Headquarters located in Beaverton, Oregon and employs 36,000 employees globally.<br />Known for the tagline “Just Do It” and their Swoosh logo.<br />Biggest shoe company in the world.<br />http://www.nikebiz.com/company_overview/facts.html<br />

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Incidents:<br />Refusal to compensate its workers with fair wages.<br />Continual use of unsanitary and unsafe conditions in its factories.<br />Child labour.<br />Violation of overtime laws.<br />http://ethicalfootprint.wordpress.com/2010/05/10/nike-just-dont-do-it/<br />

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Historical Background of the Case<br />By 1990’s, there were already disturbing stories about Nike factories in countries like Vietnam, China and Indonesia.<br />In 1997, workers from Indonesian factories went on strike because of low and unpaid wagesas well as violation of overtime laws.<br />http://www.globalexchange.org/campaigns/sweatshops/nike/faq.html<br />

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Social Impact<br />Jobs were taken overseas that could be in America which led to controversies and problems for Nike.<br />It is morally unethical to sell shoes worth $150 when the person who made your shoes was only paid a dollar.<br />http://www.mademan.com/mm/how-has-nike-impacted-society.html<br />

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Consequences<br />Many people and organizations criticized Nike.<br />Campaigns have been taken up by many including colleges and universities against Nike.<br />Some people are discouraged and started boycotting Nike products because of its bad publicity. <br />A 27% drop in their stock price and slower sales growth.<br />http://www.clrlabor.org/alerts/1997/troubles_add_up_at_nike.html<br />

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Personal Insights<br />I think Nike should increase the wages of its workers since the company is earning a lot of money.<br />It should also live up to its social responsibility and start improving the policies of the firm.<br />They should closely monitor the management in their contracted factories to ensure that their workers are not abused.<br />

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They should immediately solve problems regarding their company to avoid criticisms from different labour unions and organizations.<br />Nike should always keep in mind that ethics is very important in business because it will affect the perception of the stakeholders.<br />The company should also continue to improve the working place of the employees and regularly check the conditions of the workers in the factories.<br />